The shift in the global ethylene feedstock slate is driven by
ethane-based capacity in the US and the Middle East, and low
natural gas prices in the US and Saudi
Arabia.

Global ethylene production will expand from 127
million tpy in 2012 to 174 million tpy by 2023, an
increase of 47 million tpy. Of this growth, 24 million tons of
production will be ethane and LPG based, and 15 million tons
will be naphtha-based production.

The feedstock shift is most dramatic in
North America, where prolific shale gas production yields cheap
ethane in the US and is driving a petrochemical resurgence. By 2023,
total planned ethane-based ethylene capacity additions amount
to an impressive 11 million tpy.

Increased ethane use in North America will mark the
return of that region as a highly competitive ethylene
derivatives producer and exporter, said Vivek
Mathur of ESAI Energy.

By 2023, North American exports of key ethylene derivatives
could grow to over 10 million tpy, which would double
todays levels. Exports will target not only Latin
America but also Europe and Asia, competing directly
with Middle Eastern exporters.

The increased substitution of naphtha by ethane,
however, will also impact the supply of other petrochemical by-products,
said Mathur. We are looking at lower production of
relatively higher value petrochemicals like propylene and
butadiene.

Have your say

All comments are subject to editorial review.
All fields are compulsory.

i understand your question about the shift to cheaper fuels such as ethane, LPG will result in lower yield of ethylene co-products but i just want to understand one thing. as far as i know, even ethane yields c4 chain (butadiene, , PBR, mtbe, butene, lpg and so on...) and aromatic feedstock (for benzene) as well as propylene. then why is it so that the by products will be compromised if we shift to ethane as a source. thanks...

sadrollah-sardashti09.26.2013

I am wondering what will happen to the rubber demand in world. Has there been any substitution for rubber to be used in automotive industry, with the reduction of Naphtha as feed to the Olefin plant and subsequent reduction of butadiene. would appreciate to receive any reference with respect to the butadiene shortages and its substitutions.Thanks,